Gold prices climbed higher ahead of the US session, supported by renewed safe-haven demand following additional tariff announcements that rattled market sentiment. Investors turned to precious metals as global trade tensions escalated, increasing uncertainty around economic growth and monetary policy.
The latest round of US-imposed tariffs on key trading partners reignited fears of disruptions in global trade, prompting investors to seek shelter in gold and other haven assets. Meanwhile, the US dollar remained steady, limiting gold’s upside, as traders awaited further clarity from policymakers on the economic impact of these measures.
Gold US Dollar per Ounce 1-D Chart as of February 10th, 2025 (Source: TradingView)
Despite gold’s continued rally, rising US Treasury yields kept gains in check. The Federal Reserve’s stance on interest rates remains a key driver for gold, as any hawkish signals from central bank officials could weigh on the metal by making yield-bearing assets more attractive.
Meanwhile, broader market volatility has increased, with equity markets reacting negatively to growing geopolitical risks and trade uncertainty. The prospect of further tariffs and potential retaliation from affected countries has fueled speculation that central banks may need to adjust their policies to mitigate economic damage.
Looking ahead, traders will focus on upcoming US economic data and any additional trade policy updates that could further impact gold’s trajectory. A weaker dollar or signs of slower economic growth could push gold higher, while any easing in trade tensions may curb its rally.
For now, gold remains in an uptrend, with investors closely watching geopolitical developments. Unless sentiment shifts significantly, the metal could continue to benefit from heightened market uncertainty and its status as a preferred hedge against volatility.
